Canada Wealth Management Market (HNWI, UHNWIs) 2013 Reports

DALLAS, March 15, 2013 /PRNewswire-iReach/ -- Canadian HNWIs outperformed the worldwide HNWI average during the review period − worldwide HNWI volumes decreased by 0.3% whilst Canadian HNWI numbers rose by 1.8%. Following a decline of 3.6% in 2011, the volume of Canadian HNWIs rose by 7.7% in 2012. The total number of Canadian HNWIs is forecast to grow by 29%, to reach over 544,000 in 2017. HNWI wealth will post a smaller percentage increase, growing by 28% to reach US$1,949 billion by 2017. The report "Canada 2013 Wealth Book: Land of the Tar Sands" (http://www.rnrmarketresearch.com/canada-2013-wealth-book-land-of-the-tar-sands-market-report.html) focuses on HNWI performance between the end of 2007 (the peak before the global financial crisis) and the end of 2012. This enables us to determine how well the country's HNWIs have performed through the crisis.

In 2012, equities were the largest asset class for HNWIs in Canada (29% of total HNWI assets), followed by business interests (25%), real estate (21%), fixed income (11.7%), alternatives (7.4%) and cash (6.4%). Fixed income products recorded the strongest growth over the review period, driven by a movement into safer assets during the financial crisis. The value of business interests increased substantially over the review period, from 21.3% of Canadian HNWI assets in 2007 to 24.7% in 2012. This was aided by solid GDP growth towards the end of the review period and the emergence of a number of new HNWIs mainly from the basic materials, oil and gas and retail and fashion industries. These new HNWIs tended to have most of their funds tied up in business interests rather than investable assets. Over the forecast period, equities are expected to be the top-performing asset class for HNWIs, followed by alternatives. As a result, there will be a movement away from cash and towards alternatives and equities. As of 2012, HNWI liquid assets amounted to US$263 billion, representing 17.2% of the wealth holdings of Canadian HNWIs. WealthInsight's research showed that in 2012, 23% of Canadian HNWIs had second homes abroad.

The geographic distribution of HNWI investments

At the end of 2012, Canadian HNWIs held 26% (US$372 billion) of their wealth outside of their home country, which is in line with the worldwide norm of between 20−30%. WealthInsight expects foreign asset holdings to reach US$527 billion by 2017, when they will account for 27% of total HNWI assets. In 2012, the rest of North America made up 55% of the foreign assets of Canadian HNWIs. This was followed by Europe with 24%, Asia Pacific with 12%, Latin America with 6.7%, Africa with 1.6% and the Middle East with 0.8%. The share allocated to Europe (including the UK) decreased from 29% in 2007 to 24% in 2012. In 2012, the UK on its own accounted for half of this with 12% of foreign HNWI assets. Other notables included Ireland (3% of foreign HNWI assets) and Luxemburg (2% of foreign HNWI assets).

HNWIs – Regional and city trends

Ontario is the largest state for Canadian HNWIs, accounting for 47% of total HNWIs with just over 198,000 individuals. There are also sizable HNWI populations in Quebec (81,800 HNWIs), Alberta (58,700 HNWIs), British Columbia (49,700 HNWIs) and Manitoba (10,500 HNWIs).Toronto is the largest city for Canadian HNWIs, accounting for 28% of total HNWIs with just over 116,000 individuals. There are also sizable HNWI populations in Montreal (52,700 HNWIs), Calgary (32,100 HNWIs), Vancouver (25,600 HNWIs) and Edmonton (14,100 HNWIs).Ottawa was the top-performing city for HNWIs, with numbers rising by 11% from approximately 9,000 in 2007 to over 10,000 in 2012. This rise was assisted by strong growth in the hi-tech sector in the city. HNWI volumes in Canada's largest city, Toronto, rose by 4% over the review period, which was slightly above the country average.

The scope for the report "High Net Worth Trends in Canada 2013" (http://www.rnrmarketresearch.com/high-net-worth-trends-in-canada-2013-market-report.html) covers: Independent market sizing of Canadian HNWIs across five wealth bands; HNWI volume and wealth trends from 2007 to 2012; HNWI volume and wealth forecasts to 2017; HNWI and UHNWI asset allocations across 13 asset classes; Number of UHNWIs in each state and all major cities; Fastest growing cities and states for UHNWIs (2007-2012) and Insights into the drivers of HNWI wealth.

The report "Ultra HNWIs in Canada 2013" (http://www.rnrmarketresearch.com/ultra-hnwis-in-canada-2013-market-report.html) covers: UHNWI volume, wealth and allocation trends from 2007 to 2012; UHNWI volume, wealth and allocation forecasts to 2017; UHNWI asset allocations across 13 asset classes; Number of UHNWIs in each state and all major cities; Number of wealth managers in each city; City wise ratings of wealth management saturation and potential and more.

The report "Challenges and Opportunities for the Wealth Sector in Canada 2013" (http://www.rnrmarketresearch.com/challenges-and-opportunities-for-the-wealth-sector-in-canada-2013-market-report.html) provides information on Independent market sizing of Canadian HNWIs across five wealth bands; Number of wealth managers in each city; City wise ratings of wealth management saturation and potential; Details of the development, challenges and opportunities of the Wealth Management and Private Banking sector in Canada; Size of the Canadian wealth management industry; Largest domestic private banks by AuM and Detailed wealth management and family office information.

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